The base prices for grains crops are established on the basis of price forecasts provided by the Market Analysis Group of Agriculture and Agri-Food Canada. These prices represent the expected farm gate market price for the coming crop year. Producers also have the option of selecting the Low Price Option for each crop, which is set at 85 per cent of the base price for the crop. Also available are the Variable, Contract and In-Season Price Options. A select group of crops are also eligible for the Contract Price Option.
Alternative sources are used to determine prices for some smaller acreage crops.